iPad Sales Saw Steep YoY Decline for Q1 2015, but CEO Tim Cook is Optimistic about Upcoming Products

[RaduTyrsina]

Apple has managed to break a new record when it comes to iPhone sales and revenue coming from app purchases. However, on account of the global tablet market decreas, iPad shipments too have continued their decline.

For the quarter ending in December, iPad shipments accounted for 21.4 million units, which is down 18 percent from just over 26 million sold during the same period in 2014. Apple has seen a 22 percent decrease in year-over-year revenue, as iPad sales brought in about $9 billion this year, compared to 2014's $11.5 billion numbers.

However, despite the decrease in sales, Tim Cook seems to be confident on future iterations of Apple's tablet lineup, which may or may not bee seen as a hint for the iPad Pro launch. He said:

"I'm not projecting. To be clear with everyone, I'm not projecting something very different next quarter or the next. I'm thinking over the long run."

"So I'm not predicting the 90-day clips and so forth, but over the long arc of time," Cook said. "I really believe that iPad is a great space, a great product and coupled with the product innovation we've got, I think there's a very bright future for it."

He also revealed that 50 percent of iPad buyers in the U.S, Japan and UK were new to Apple's tablet. In China, more than 70 percent bought an iPad for the first time.

Source: Apple

 

[s2mikey]

Ipad buyers are very different from iPhone buyers. It's a simple as that. iPad users do not upgrade every year or at least most don't. They are much more likey to keep the device for many years and skip multiple generations between updates. Just the way it is.

The phone contracts and how they are setup facilitate this in some ways. Plus, IMO, phones are always with people and out in the open so people feel more compelled to have the latest and greatest so they look good. Ipads don't travel as much and don't draw the attention that phones do.

I went from an ipad 2 to the Air and will probably wait just as long to replace my Air which just happens to work perfectly and probably will for a while.

 

[iluvmyipad]

I agree. Most people upgrade phones often, especially with these new plans that allow that. iPads are usually kept longer, unless the new features won't be available on the older models. I went from the original ipad, to the 3rd ipad. Big difference. I haven't felt the need to upgrade yet. I generally upgrade phones every 2 years, because of contracts. The ipad is a great device, and it lasts.

 

[scifan57]

The thing is that the tablet market is reaching saturation. Sales will decline until they reach replacement level for the existing market size. Apple will have to take market share from the other tablet manufacturers in order to increase their sales.

 

[twerppoet]

The thing is that the tablet market is reaching saturation. Sales will decline until they reach replacement level for the existing market size. Apple will have to take market share from the other tablet manufacturers in order to increase their sales.

I won't pretend to know all the dynamics of tablet sales, but according to Apple's last quarterly earnings call, half of all iPad sales last quarter were to first time customers, people who had never purchased an iPad from Apple before.

That doesn't sound much like market saturation.

The dip in sales is probably a complicated combination of several factors and reflects a slowing of growth, rather than a saturated, stable, market demand.

 

[scifan57]

I won't pretend to know all the dynamics of tablet sales, but according to Apple's last quarterly earnings call, half of all iPad sales last quarter were to first time customers, people who had never purchased an iPad from Apple before.

That doesn't sound much like market saturation.

The dip in sales is probably a complicated combination of several factors and reflects a slowing of growth, rather than a saturated, stable, market demand.

That's certainly possible, even likely. Maybe instead of market saturation, it's just an adjustment to a smaller share of the entire tablet market as it currently exists. Things could change based on what Apple and the other tablet makers introduce in the future.

 

[tlbaker]

Well, I already have 2 iPads both updated with iOS 8 and I haven't win lotto yet so.... LMAO


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